The British government’s merger of its diplomatic and overseas aid departments in 2020 has cost at least £24.7 million in three years, with the new department only getting “back on track” after reducing its ambitions, a new report found.
The UK’s Foreign Commonwealth and Development Office (FCDO) was formed in 2020 during the pandemic by bringing together the government’s only two internationally-focused departments, the Foreign & Commonwealth Office and the Department for International Development (DFID).
The move was intended to increase the UKs impact on the world stage by combining aid and diplomacy efforts, as well as saving money.
Yet a new report by the National Audit Office found a spend of £24.7 million between April 2020 and April 2023 paid for the merger alone. This did not include indirect costs, such as disruption, diverted effort and the impact on staff, which the government had not tracked.
“FCDO does not know the full costs of the merger and has chosen not to systematically track its benefits, including cost savings, organisational improvements and efficiency gains,” the report said.
The value for money of the merger could not be assessed owing to the absence of “clear objectives or mechanisms to fully track costs and identify benefits”.
One of the FCDO’s successes, the report stated, has been scaling back on its initial plans of delivering 12 programmes within two-years, which allowed the merger to be “back on track”.
“FCDO’s initial portfolio to deliver the merger was unrealistic in scope and timing. The new department recognised it needed to revisit its plans and scaled back its ambitions in May 2022, successfully bringing the merger back on track. All programmes in the updated portfolio were subsequently completed by April 2023,” the report said.
The FCDO’s integrated approach had improved the government's abilities to respond to international crisis, such as “joint humanitarian and political” response to the Ebola outbreak in Uganda, and support for delivery of Covid-19 vaccines across the world, the report said.
The creation of three senior development posts, which included promoting the minister for development and Africa to Cabinet level, was also commended in the report.
But this has come at the expense of aid and development programmes which were at the core of the DFID.
The loss of senior development staff and a shortage of overseas programme managers, has reduced the FCDO's capabilities. The department had marked the risk of skills shortage in aid and development as “severe”, the report said.
Issues in IT, human resources and the allowance for staff posted abroad needed to be resolved, the report recommended.
The report comes as British MPs and aid agencies have lamented the cuts to UK overseas funding for aid and development projects, which was reduced to 0.5 per cent in 2020 from the UN-required minimum of 0.7 per cent.
Sarah Champion, chairwoman of the International Development Committee and a Labour MP for Rotherham, said the report reinforces a view that the FCDO merger was a “bad move at a bad time”.
“The merger hasn’t realised efficiency savings or the benefits that were envisioned. You have to question if the merger was anything other than ideology as it can’t be shown to have offered value for taxpayers.
“The NAO can only find ‘success’ against the scaled back version of unrealistic plans. The UK has taken a hit to its international standing and to the impact of our aid spending,” she said in a statement.
She feared the biggest lost was in staffing, with civil servants quitting the service or recording low levels of engagement and productivity as a result of the merger.
She blamed the Home Office for taking a “staggering increasing chunk” of the overseas aid budget to pay for refugees in the UK.
“The government should now urgently take back some control of these impoverished outcomes and claw ODA budget funding back from the Home Office, which has been taking a staggering, increasing chunk away from its rightful purpose – addressing the great humanitarian challenges of our time.”
Earlier in March, Rory Stewart, former head of DFID and who now leads the charity GiveDirectly, said the UK government's reduced spending overseas was being “concealed” from the public.
“The UK is spending much less money than it was. It is a little concealed from the public because of this apparent shift from 0.7 per cent to 0.5 per cent,” he told MPs.
“We are seeing a change in many bilateral programmes in numerous countries in sub-Saharan Africa,” he said.
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Percentage increase in visitors in eight years: 500 per cent
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Zayed Sustainability Prize
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
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Director: Sam Raimi
Cast: Benedict Cumberbatch, Elizabeth Olsen, Chiwetel Ejiofor, Benedict Wong, Xochitl Gomez, Michael Stuhlbarg and Rachel McAdams
Rating: 3/5
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
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Everton: Walcott (15'), Richarlison (31' )
Southampton: Ings (54')
Man of the match: Theo Walcott (Everton)
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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
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- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
GOLF’S RAHMBO
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Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
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Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
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Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
Places to go for free coffee
- Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day.
- La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
- Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
- Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
Sonchiriya
Director: Abhishek Chaubey
Producer: RSVP Movies, Azure Entertainment
Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey
Rating: 3/5
The specs
Engine: 6.2-litre V8
Power: 502hp at 7,600rpm
Torque: 637Nm at 5,150rpm
Transmission: 8-speed dual-clutch auto
Price: from Dh317,671
On sale: now
THE 12 BREAKAWAY CLUBS
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
UAE currency: the story behind the money in your pockets